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Bitcoin vs. credit card transactions

The definition given to bitcoin by its founder touches the core of the main difference between the two. The founder described the system as a peer-to-peer electronic cash system. In some sense, bitcoin payments are similar to credit card transactions, without going through any type of financial entity or establishment. The entire process is executed through a private network of computers. However, these transactions use cryptography to secure it, which makes the entire process highly reliable, while it is at the same time, highly transparent. Make sure to buy bitcoin currency from reliable platforms, always.

On the contrary, credit card transactions are operated through a financial institution, in which the entity is using your acceptance given to the seller, to pull some money out of your account and move it in theirs. While normal credit card transactions involve four parties (the cardholder, the merchant, the acquitter and the issuer), in bitcoin transactions there are involved only two parties in the process: the seller and the buyer. Also, when operating bitcoin transactions it is not necessary to provide personal identification data, such as your name or address. You only use a private key and address and manage your money depending on your necessities. Also, there are quick response codes or solutions, which allow the holder of the currency to make quick transactions.

A thing worth keeping in mind is that bitcoin transactions cannot be reversed, getting a refund being possible only with a transaction operated by the receiver of the initial amount. On the other hand, credit card transactions can be cancelled, if you change your mind. Another difference between the two is that while you can store your cash or credit card inside a physical wallet, bitcoins will be stored in an electronic wallet that you can install in your smartphone or computer. Also, while credit card transactions can be quite expensive sometimes, bitcoin merchants have low to inexistent fees for these transactions, which makes them more affordable. Bitcoin currency can be bought by bitcoin exchange, but there are several other ways to get it, such as mining.

For both merchants and buyers the advantage of operating with bitcoin is the simplicity with which the transactions are made. Bonus, they are anonymous and no interruptions will ever intervene, unlike in the case of traditional transactions. Also, another great difference between the two is that once you lose bitcoins, they remain lost. Nobody else can use them, as nobody can simply guess the private key. Although they remain in the cycle, there is literally no way to use them, so they remain dormant.

Bottom line is that bitcoin might be one of the greatest currencies available currently, not being affiliated with any government, not being controlled by any other financial institution. Make sure to buy your bitcoin currency from reliable platforms such as BITELEC, and you should be just fine. Also, investing in this currency has the great advantage of offering increased levels of online privacy, while being at the same time completely transparent.